A farmer takes a farm on rent and carries on farming with the help pf family members identify explicit and - Economics - Production and Costs

Question

A farmer takes a farm on rent and carries on farming with the help
pf family members identify explicit and implicit costs from this
information explain

Lakshay Singhal · Accepted Answer

Dear Student ,
Explicit cost is the cost incurred on hiring factors of
production Rent is the explicit cost because farmer takes a farm on
rent and has to pay for it
Implicit cost is the cost incurred on self own resources Work
done by family members is the implicit cost because it is the
expenditure to oneself for the use of self own resources
Regards

A farmer takes a farm on rent and carries on farming with the help pf family members.identify explicit and implicit costs from this information.explain